CHEMTRADE RECEIVES STATEMENT OF CLAIM FROM MARSULEX

TORONTO, August 15, 2005 - Chemtrade Logistics Income Fund (TSX: CHE.UN) (the “Fund”) and Chemtrade Logistics Inc. (“CLI” and together with the Fund, “Chemtrade”) announced today that it has been served with a statement of claim from Marsulex Inc. (“Marsulex”).  Marsulex has claimed that Chemtrade breached its non-competition agreement with Marsulex dated July 18, 2001 by acquiring Peak Chemical, LLC and Peak Sulfur, Inc. (the “Peak Acquisition”).  Marsulex also claims that Chemtrade is in breach of a services agreement with Marsulex in respect of pooling certain insurance requirements. Marsulex is seeking damages for the alleged breaches of contract in the amount of $72.8 million, as well as other relief.

Chemtrade believes that the claims are without merit and Chemtrade intends to vigorously defend against the claim.

The Fund disclosed in its final short form prospectus dated August 11, 2005 that Chemtrade had earlier received and responded to a letter from Marsulex indicating that Marsulex would view the Peak Acquisition as a breach of the non-competition agreement.  Chemtrade has received advice from its legal advisors that the non-competition covenants contained in the non-competition agreement are likely unenforceable.

Chemtrade operates diversified businesses that provide industrial chemicals and services to customers in North America and around the world.  Through marketing services agreements and its own production facilities, Chemtrade is one of the world’s largest suppliers of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite.  Chemtrade is also a leading regional supplier of sodium chlorate and elemental sulphur.

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.

For further information: